Ecology Labs Inc. will pay a dividend of $2.50 per share in the next 12 months (D₁). The required rate of return (K_e) is 19 percent and the constant growth rate is 8 percent. (Each question is independent of the others.)

a. Compute the price of Ecology Labs' common stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price

b. Assume K_e, the required rate of return, goes up to 23 percent. What will be the new price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

New price

c. Assume the growth rate (g) goes up to 10 percent. What will be the new price? K_e goes back to its original value of 19 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

New price

d. Assume D₁ is $3.00. What will be the new price? Assume K_e is at its original value of 19 percent and g goes back to its original value of 8 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

New price